House Pensions Chairman addressed City of Dallas Dallas Police & Fire Pension Plans
Texas Insider Report: AUSTIN Texas Im very concerned that without this piece of legislation the Dallas Plan would have the potential to collapse in the very near future said
House Pensions Committee Chairman Dan Flynn yesterday.
We are continuing to refine the plan with all stakeholders to ensure the end result is the best possible outcome for the City of Dallas the Pension Plan the Retirees and the newest recruits to the fire and police force.
If left uncorrected Pension plans that are not actuarially sound have the potential to cause huge amounts of damage across the state. If local and State of Texas bond ratings are potentially downgraded as a result of these pension plans this could cost the State of Texas millions of dollars.
Flynns bill HB 3158 directs the plan to work out its issues locally with a new board of trustees. That board will be free of heavy representation of those from elected positions and those without significant business experience Flynn said.
Additionally it will be composed of business executives with strong training required in fiduciary duty to save the plan and will be informed of the dangers of alternative investments and general board
functions such as rule making.
With the growing number of pension plans in Texas that are not actuarially sound this bill represents a giant step forward for one of the plans most often criticized as the poorest governed with the highest benefit payout.
I want to thank Sam Friar and Kelly Gottschalk at the plan Mayor Rawlings and the many others who have contributed said Flynn.
Flynn also filed
House Joint Resolution 85 to address the states responsibility to bail out pension funds stating that the state is not responsible and will not bail out those funds in the future. The fix must be local.
In conjunction with HJR 85
Flynn has filed House Bill 2434 that addresses the $66 billion dollars the plans are short in pension fund obligations and requires actuarial soundness of the remaining pension plans that currently do not meet actuarial soundness standards.
